After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than any of the other former Soviet republics. Belarus and Russia signed a treaty on a two-state union on 8 December 1999 envisioning greater political and economic integration. Although Belarus agreed to a framework to carry out the accord, serious implementation has yet to take place. Since his election in July 1994 as the country's first president, Alexandr LUKASHENKO has steadily consolidated his power through authoritarian means. Government restrictions on freedom of speech and the press, peaceful assembly, and religion continue.

15 March 1994; revised by national referendum of 24 November 1996 giving the presidency greatly expanded powers and became effective 27 November 1996; revised again 17 October 2004 removing presidential term limits

chief of state: President Aleksandr LUKASHENKO (since 20 July 1994) head of government: Prime Minister Sergey SIDORSKIY (since 19 December 2003); First Deputy Prime Minister Vladimir SEMASHKO (since December 2003) cabinet: Council of Ministers elections: president elected by popular vote for a five-year term; first election took place 23 June and 10 July 1994; according to the 1994 constitution, the next election should have been held in 1999, however, Aleksandr LUKASHENKO extended his term to 2001 via a November 1996 referendum; subsequent election held 9 September 2001; an October 2004 referendum ended presidential term limits and allowed the president to run in a third election, which was held on 19 March 2006; prime minister and deputy prime ministers appointed by the president election results: Aleksandr LUKASHENKO reelected president; percent of vote - Aleksandr LUKASHENKO 82.6%, Aleksandr MILINKEVICH 6%, Aleksandr KOZULIN 2.3%; note - election marred by electoral fraud

bicameral National Assembly or Natsionalnoye Sobranie consists of the Council of the Republic or Soviet Respubliki (64 seats; 56 members elected by regional councils and eight members appointed by the president, to serve four-year terms) and the Chamber of Representatives or Palata Predstaviteley (110 seats; members elected by popular vote to serve four-year terms) elections: last held 17 and 31 October 2004; international observers widely denounced the elections as flawed and undemocratic based on massive government falsification; pro-LUKASHENKO candidates won every seat after many opposition candidates were disqualified for technical reasons election results: Soviet Respubliki - percent of vote by party - NA; seats by party - NA; Palata Predstaviteley - percent of vote by party - NA; seats by party - NA

Belarus has seen little structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping with this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene in the management of private enterprises. Since 2005, the government has re-nationalized a number of private companies. In addition, businesses have been subject to pressure by central and local governments, e.g., arbitrary changes in regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. A wide range of redistributive policies has helped those at the bottom of the ladder; the Gini coefficient is among the lowest in the world. Because of these restrictive economic policies, Belarus has had trouble attracting foreign investment. Nevertheless, GDP growth has been strong in recent years, reaching nearly 8% in 2007, despite the roadblocks of a tough, centrally directed economy with a high, but decreasing, rate of inflation. Belarus receives heavily discounted oil and natural gas from Russia and much of Belarus' growth can be attributed to the re-export of Russian oil at market prices. Trade with Russia - by far its largest single trade partner - decreased in 2007, largely as a result of a change in the way the Value Added Tax (VAT) on trade was collected. Russia has introduced an export duty on oil shipped to Belarus, which will increase gradually through 2009, and a requirement that Belarusian duties on re-exported Russian oil be shared with Russia - 80% will go to Russia in 2008, and 85% in 2009. Russia also increased Belarusian natural gas prices from $47 per thousand cubic meters (tcm) to $100 per tcm in 2007, and plans to increase prices gradually to world levels by 2011. Russia's recent policy of bringing energy prices for Belarus to world market levels may result in a slowdown in economic growth in Belarus over the next few years. Some policy measures, including tightening of fiscal and monetary policies, improving energy efficiency, and diversifying exports, have been introduced, but external borrowing has been the main mechanism used to manage the growing pressures on the economy.

general assessment: Belarus lags behind its neighbors in upgrading telecommunications infrastructure; state-owned Beltelcom is the sole provider of fixed-line local and long distance service; fixed-line teledensity of 33 per 100 persons; mobile-cellular telephone density of 58 per 100 persons; modernization of the network progressing with roughly two-thirds of switching equipment now digital domestic: fixed-line penetration is improving although rural areas continue to be underserved; 4 GSM wireless networks are experiencing rapid growth; strict government controls on telecommunications technologies international: country code - 375; Belarus is a member of the Trans-European Line (TEL), Trans-Asia-Europe (TAE) fiber-optic line, and has access to the Trans-Siberia Line (TSL); 3 fiber-optic segments provide connectivity to Latvia, Poland, Russia, and Ukraine; worldwide service is available to Belarus through this infrastructure; additional analog lines to Russia; Intelsat, Eutelsat, and Intersputnik earth stations (2007)

as of January 2007, ground demarcations of the boundaries with Latvia and Lithuania were complete and mapped with final ratification documentation in preparation; 1997 boundary delimitation treaty with Ukraine remains unratified over unresolved financial claims, preventing demarcation and diminishing border security

limited cultivation of opium poppy and cannabis, mostly for the domestic market; transshipment point for illicit drugs to and via Russia, and to the Baltics and Western Europe; a small and lightly regulated financial center; new anti-money-laundering legislation does not meet international standards; few investigations or prosecutions of money-laundering activities